Agência Brasil

Rio - National crude steel production amounted to 2.576 million tons in January, down 0.5%. The preliminary data announced by the Brazilian Steel Institute (IBS) indicate that around 1.3 million tons were destined for the domestic market and that the rest was exported. The institute also informs that domestic sales were off 5.3% in comparison with January, 2005.

The drop in production was caused by market adjustments, according to the IBS press office, which went on to explain that, since the data refer to only one month, there is no reason for the institute to alter its expectation that it will be a good year for the sector. The estimate is that Brazilian mills will turn out 32.2 million tons by the end of 2006. Last year's production totaled 31.6 million tons, 3.9% less than in 2004.

Despite the decline in 2005, Brazil continued to lead crude steel production in Latin America, with about half of the 63.037 million tons of steel made in the region. Mexico, with 16.239 million tons, came in second. In global terms, however, China is the leader, with an output of 349.362 million tons of crude steel in 2005, 24.6% more than in 2004.

According to the IBS, the data referring to January, 2006, demonstrate a 7.4% increase in rolled and flat steel production and a 7.3% increase in long steel production (rods and bars). In regional terms, Minas Gerais led the ranking, with 991.8 thousand tons, followed by Espírito Santo, with 482 thousand tons.

Translation: David Silberstein